CHINA REPORT
On Dec. 29, 2020, the Ministry of ecology and environment announced that Dec. 1, 2022, all off-road mobile machines below 560kw (including 560kw) produced, imported and sold and their diesel engines installed shall meet the requirements of the Chinese IV emission standard.
The implementation time of Chinese IV emission of off-road mobile machinery above 560kw and its installed diesel engines will be announced separately.
In 2022, due to adverse factors at home and abroad, enterprises in the industry will generally face market pressure. In order to better switch the upgrading of Chinese IV emission standards from the aspects of supply chain and industrial chain, steadily promote the implementation of Chinese IV emission standards, reduce the operating pressure of enterprises, and maintain the stable and sustainable development of the industry, the Association recently submitted the “request for instructions on the implementation time delay of Chinese IV emission standards for off- road mobile construction machinery” to the atmospheric environment department of the Ministry of ecological environment according to the policy advice and suggestions of enterprises on Chinese IV emission, It is suggested that the conversion time of the whole machine products with the national three emission standards for construction machinery to the national four emission standards be postponed from December 1, 2022 to April 1, 2023. Regarding the application submitted by the association to the Ministry of ecology and environment for “postponing the implementation time of the ‘National four’ emission standard for off-road mobile construction machinery”, the Association received a clear reply: it will not be further extended! Therefore, the “national four” emission standards for off-road mobile machinery will be switched as scheduled from December 1, 2022.
Source: Sohu Read The Article
PSR Analysis: The effective date of the Chinese IV will be Dec. 1, 2022, less than four months. Under the heavy pressure of environmental protection and the impact of the epidemic, the standard switching time is tight, and the task is difficult. It is urgent to upgrade technology and clear inventory.
After the standard switch, the inventory equipment of Chinese III that cannot be digested as scheduled can only be cleared in the form of secondhand machines in 2023. It is inevitable that the sales of Chinese IV machines will be impacted in such a short time.
After five years of quick growth rate, the construction machinery industry will enter a downward cycle in the second half of 2021. Due to the downward cycle of the industry and the impact of the epidemic, the market sales volume in 2022 is less than expected, and many main engine manufacturers are overstocked with Chinese III equipment.
Therefore, due to the tight time and heavy tasks of the Chinese IV emission standards, the industrial enterprises are facing many difficulties such as environmental protection, technology upgrading and inventory clearing. We hope that with the joint efforts of all sectors of the industry, the industrial enterprises can ride the wind and tide and smoothly get out of the current difficulties.
The implementation of the Chinese IV emission standard has been delayed several times. The environmental protection department hopes to implement the fourth national emission standard as soon as possible. However, for most users in the industry, the premature implementation of the Chinese four emission standards will inevitably lead to hasty preparation, and the failure of oil products in some areas will also bring difficulties to the formal implementation. Therefore, the implementation time has been postponed several times.
In 2021, the Beijing IV emission standard has been implemented, and the oil and technology problems that have troubled the Chinese IV emission standard have been overcome. It is natural to implement the Chinese IV emission standard; Second, enterprises and users have prepared for the implementation of the Chinese IV emission standards.
Since 2020, most of the host enterprises and their supporting parts enterprises have released a full range of products aimed at the national four emissions. Almost all enterprises have made thorough preparations according to the official implementation of the national four emissions on December 1, 2022. The same is true for users. If the implementation of the Chinese IV Day is postponed to April 1, 2023, it will not hinder the launch and sales of the Chinese IV products, except that it will give enterprises more months to digest the Chinese III Day inventory. Moreover, in the current market downturn, most enterprises have put their efforts on the fourth national market. PSR
Jack Hao is Senior Research Manager – China for Power Systems Research
